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Law Offices of Usmaan Sleemi: What Are Illegal Employment Practices?

The illegal practices employees actually encounter most often are not dramatic. They are payroll decisions: a salaried title used to avoid overtime, a deduction for a cash register shortage, unpaid minutes before a shift that add up over a year. The Law Offices of Usmaan Sleemi handles these alongside discrimination and retaliation claims, and the pay violations are the ones people are least likely to recognize as unlawful. New Jersey also gives them a six-year lookback, which makes small weekly amounts substantial by the time a claim is filed.

What makes an employment practice illegal?

A practice is illegal when a statute prohibits it, not when it is merely unfair or one-sided.

That line disappoints people, because employers are free to be arbitrary about schedules, assignments, favoritism, and most discipline. The prohibitions cluster in four areas: how you are paid, what you are asked before hiring, whether protected characteristics influence decisions, and how the employer responds when you complain.

Which pay practices are illegal?

Wage violations are the most common category, and most of them come from how hours or rates are calculated rather than from an outright refusal to pay.

  • Failing to pay overtime at one and a half times the regular rate for hours past 40 in a workweek
  • Calculating overtime on base pay alone while excluding nondiscretionary bonuses, shift differentials, or commissions, all of which belong in the regular rate
  • Requiring or permitting off-the-clock work, including pre-shift setup, post-shift cleanup, and answering messages after hours, when the employer knows it is happening
  • Averaging hours across two weeks to avoid overtime in the week that exceeded 40
  • Keeping any portion of an employee’s tips, which managers and supervisors are barred from doing
  • Paying below the New Jersey minimum wage, which has exceeded $15 an hour for most employers since 2024 and is adjusted annually by the Department of Labor and Workforce Development

Does being salaried mean I am not owed overtime?

No. Salary alone never establishes exempt status, and this is the single most common wage misunderstanding.

Exemption requires both a salary at or above the federal threshold and job duties that genuinely fit an exemption category such as executive, administrative, or professional. The operative federal threshold is $684 per week, or $35,568 annually. A 2024 rule raising that figure was vacated in federal litigation, so the earlier threshold governs, and this is an area worth confirming against current Department of Labor guidance before relying on it. A job title, a salaried paycheck, and an employer’s say-so do not decide the question. The actual duties do.

What about breaks, deductions, and final pay?

New Jersey handles these differently than most people expect, and one common assumption is simply wrong.

New Jersey does not require meal or rest breaks for adult employees. Only minors are entitled to a break, 30 minutes after five consecutive hours. If a break is given but interrupted by work, that time must be paid.

Deductions are tightly limited. Under the New Jersey Wage Payment Law, employers may withhold only what law specifically permits, which excludes most deductions for cash shortages, breakage, customer walkouts, or damaged equipment. Your final paycheck is due by the next regular payday under N.J.S.A. 34:11-4.3.

The 2019 Wage Theft Act sharpened the remedies considerably. Claims reach back six years, liquidated damages can run up to 200 percent of the wages owed, and owners and officers can be individually liable.

Which hiring and contract practices are unlawful?

Several, and they apply before anyone is hired.

Employers with 15 or more employees may not ask about criminal history during the initial application stage under New Jersey’s Opportunity to Compete Act. Salary history cannot be required or used to screen applicants under N.J.S.A. 34:6B-20. Classifying a worker as an independent contractor when the ABC test at N.J.S.A. 43:21-19(i)(6) is not satisfied is itself a violation, and a contract labeling someone a contractor does not settle it.

Non-competes remain enforceable in New Jersey if reasonable in scope and duration and necessary to protect a legitimate business interest. The Federal Trade Commission’s rule banning most non-competes was set aside in federal court in 2024 and is not in effect, so anyone told otherwise is working from outdated information.

What about discrimination and retaliation?

Both are unlawful, and both are broader in New Jersey than under federal law.

The Law Against Discrimination applies to employers of any size and covers a longer list of protected characteristics than Title VII. Retaliation for complaining is a separate violation with its own elements, and in wage cases, adverse action within 90 days of a complaint triggers a rebuttable presumption of retaliation under the Wage Theft Act.

Pay violations leave a paper trail, which is why they are often the most provable claims a worker has. Save your pay stubs, schedules, time records, and any written pay policies, and write down hours you worked that were not recorded. If your paychecks do not match your hours, or a salaried title is being used to avoid overtime, bring those records to a case review with the Law Offices of Usmaan Sleemi.